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Financial Planning / Tax Strategies
|Subject: Help: Proof for IRS - to reduce long term gain.||Date: 4/7/2005 3:47 PM|
|Author: kmote||Number: 78382 of 119722|
I was informed that it may be advisable to take a long term gain on a
Stock in my portfolio to pay college tuition resulting in (for my tax
bracket 10%)a 50% reduction of tax liability. 5% is a great deal!
I just have to provide proof to IRS that the proceeds were used to pay
tuition. I tried to look around www.irs.gov for the requirements, but
can't find anything on the rule.
Scottrade said all they would need from us is a note from me and my
wife authorizing them to issue a check to the college. For proof,
would a copy of the Sale Confirmation and a copy of Scottrade's monthly
statement be sufficent to satisfy IRS?
I have saved cash on the side to pay for my son's tuition. I
don't really want to sell the stock, but if I buy it back with the
ready cash on the side, I would be starting with a new base.
It certainly sounds like a smart idea.
My son will be attending in the fall. I am trying to plan for
this strategy in advance.
Thanks for your help,
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